CEE3000HW5-Spr08

CEE3000HW5-Spr08 - Name Date CEE 3000 CIVIL ENGINEERING...

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Name: _____________________________ Date: ________________________ CEE 3000: CIVIL ENGINEERING SYSTEMS Homework #5 Spring 2008 1. A dam is under construction. The initial investment, based on dam height, is shown below. Also shown are estimated annual savings from reduced flood damage. The interest rate is 6% and the dam is expected to last forever. Based on benefit/cost analysis, which dam height should be selected? (5 points) ____________________________________________ Dam height (ft) Initial cost Annual savings ____________________________________________ 24 $23, 000,000 $1,900,000 26 $25,500,000 $2,100,000 28 $29,500,000 $2,400,000 _____________________________________________
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2 2. Two improvements are being considered for a small section of a highway (1) an embankment-bridge combination and (2) a cutting-tunnel combination. Estimates for the alternatives have been collected and are given below. Determine which alternative should be selected using Present Worth analysis (i.e., NPW or EUAW analysis). The interest rate is 5%. (5 points) Alternative Description
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CEE3000HW5-Spr08 - Name Date CEE 3000 CIVIL ENGINEERING...

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